Neiman Marcus 2003 Annual Report Download - page 226

(d) Any overdue principal of and interest on any Loan shall bear interest, payable on demand, for each day from and
including the date payment thereof was due to but excluding the date of actual payment, at a rate per annum equal to the sum of 2%
plus the Base Rate plus the Base Rate Margin for such day.
(e) The Administrative Agent shall determine each interest rate applicable to the Loans hereunder. The Administrative
Agent shall promptly notify the Borrower and the participating Lenders of each rate of interest so determined, and its determination
thereof shall be conclusive in the absence of manifest error.
(f) The Reference Bank agrees to use its best efforts to furnish quotations to the Administrative Agent as contemplated
by this Section. If the Reference Bank does not furnish a timely quotation, the provisions of Section 8.01 shall apply.
Section 2.08. Method of Electing Interest Rates.
(a) The Loans included in each Committed Borrowing shall bear interest initially at the type of rate specified by the
Borrower in the applicable Notice of Committed Borrowing. Thereafter, the Borrower may from time to time elect to change or
continue the type of interest rate borne by each Group of Loans (subject to Section 2.08(d) and the provisions of Article 8), as follows:
(i) if such Loans are Base Rate Loans, the Borrower may elect to convert such Loans to Euro-Dollar Loans as
of any Euro-Dollar Business Day; and
(ii) if such Loans are Euro-Dollar Loans, the Borrower may elect to convert such Loans to Base Rate Loans as
of any Domestic Business Day, or may elect to continue such Loans as Euro-Dollar Loans, as of the end of any Interest
Period applicable thereto, for an additional Interest Period, subject to Section 2.13 if any such conversion is effective on any
day other than the last day of an Interest Period applicable to such Loans.
Each such election shall be made by delivering a notice (a "Notice of Interest Rate Election") to the Administrative Agent not later than
12:00 Noon (New York City time) on the third Euro-Dollar Business Day before the conversion or continuation selected in such
notice is to be effective. A Notice of Interest Rate Election may, if it so specifies, apply to only a portion of the aggregate principal
amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans comprising such Group
and (ii) the portion to which such Notice applies, and the remaining portion to which it does not apply, are each at least $5,000,000
(unless such portion is comprised of Base Rate Loans). If no such notice is timely received before the end of an Interest Period for
any Group of Euro-Dollar Loans, the Borrower shall be deemed to have elected that such Group of Loans be converted to Base Rate
Loans at the end of such Interest Period.
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